Principal's obligations are:
- To inform the agent about all circumstances significant for mediation.
- To provide the agent with original documents proving the right to the property and inform them about any encumbrances.
- To enable property viewing at agreed times and manner.
- To provide accurate property information, including price and structure.
- To pay the agreed commission and, if agreed, reimburse other expenses.
- To inform the agent about all changes regarding the transaction, especially concerning rights, deadlines, and price, within three days.
- To notify the agent if a party who viewed the property decides to conclude a contract without mediation.
- To pay the agent the full commission, even if the other party or a related party is also the principal of the agent.
Exclusive mediation
The principal may explicitly agree to an exclusive mediation clause, committing not to dispose of the property nor engage another agent for its transaction during the agreed period.
If during this clause's validity the principal concludes a legal transaction regarding the property without the agent's mediation, they are obligated to pay the agreed commission as compensation for damages.
The agent is obligated to specifically warn the principal about the meaning and legal consequences of the exclusive mediation clause in the Mediation Agreement.
Exercising the right to commission
The agent acquires the right to commission on the day of notarization of the pre-contract/sales contract, and no later than 15 days from contract notarization.
The agent cannot request partial advance payment of commission before contract conclusion.
The commission amount and costs of additional services are determined by the Price List of Mediation Services which is part of the General Terms.
The agent may agree on compensation for additional expenses necessary for executing the order, including advance payment of these expenses, if explicitly stated in the mediation agreement.
The agent is entitled to commission if the principal's spouse, domestic partner, descendant, parent, or other related party concludes a legal transaction influenced by the agent.
If the principal concludes a legal transaction within one month after contract termination, which resulted from the agent's work before termination, they must pay the full commission unless otherwise agreed. If the transaction resulted from partial mediation activity, proportional commission is paid.
The agent has no right to commission if they conclude a contract in their own name or if it's concluded by a party performing mediation activities for them.
Costs of obtaining documentation proving property ownership are borne by the principal, unless otherwise agreed.
The agent may approve a discount on the mediation commission.
Liability for damages
The agent must act with the diligence of a prudent businessperson when performing mediation and other activities related to the transaction.
The agent is liable to the principal for damages caused by failure to fulfill contractual obligations under the Mediation Agreement and General Business Terms.
The agent is not responsible for fulfillment of obligations by any contractual party in the pre-contract/sales agreement.
The agent is not liable for property quality or hidden defects, unless the seller informed them in writing about a hidden defect that the agent concealed from the buyer.
Factors affecting property value:
- Location
- Property condition (age and construction quality for buildings, land class for agricultural land)
- Floor level
- Installations (type of heating, condition of plumbing, sewage and electrical installations)
- Windows/doors
- Construction materials used
- Roof condition
- Facade condition
- Garage/parking space
Property-related taxes:
- Property transfer tax: 2.5% of market value, paid by the buyer during ownership transfer.
- Property tax: Paid on property ownership rights annually, paid quarterly.
Key aspects when purchasing property:
- Ownership documentation: Verify if the seller is the legal owner and whether there are encumbrances or mortgages.
- Building permit: Confirm the property was built in accordance with laws and all documents are in order.
- Property condition: Conduct detailed inspection and assess potential deficiencies or need for repairs.
- Legal status: Check if there are legal disputes regarding the property.
- Land registry: Ensure the property is properly registered and there are no obstacles to ownership transfer.
- Infrastructure and surroundings: Research infrastructure quality, access to roads, schools, shops and public transport.
- Maintenance costs: Verify expected maintenance costs, including taxes, utilities and other obligations.